Establishes business franchise and personal income tax credits for a portion of the consideration paid under a contract with a minority or women-owned business.
STATE OF NEW YORK
________________________________________________________________________
7008
2019-2020 Regular Sessions
IN ASSEMBLY
April 3, 2019
___________
Introduced by M. of A. PEOPLES-STOKES -- read once and referred to the
Committee on Ways and Means
AN ACT to amend the tax law, in relation to establishing business fran-
chise and personal income tax credits for certain businesses which
contract with the state or political subdivisions thereof and in unre-
lated contracts, also with minority and women-owned business enter-
prises
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 210-B of the tax law is amended by adding a new
2 subdivision 28 to read as follows:
3 28. Minority and women-owned business employment incentive credit. (a)
4 General. A taxpayer shall be allowed a credit, to be computed as
5 provided in this subdivision, against the tax imposed by this article
6 for a certain portion of the consideration paid to a minority or women-
7 owned business enterprise pursuant to a contract for the provision of
8 goods or services. The credit provided for in this subdivision shall be
9 allowed with respect to the tax year in which the consideration is paid
10 to the minority or women-owned business enterprise.
11 (b) Definitions. For the purposes of this subdivision, the following
12 terms shall mean:
13 (i) "Government agency" means a state agency or a state authority as
14 defined in subdivision eleven of section three hundred ten of the execu-
15 tive law, or a political subdivision as defined in subdivision one of
16 section one hundred of the general municipal law.
17 (ii) "Minority or women-owned business enterprise" means a minority-
18 owned business enterprise as defined in subdivision seven of section
19 three hundred ten of the executive law or a women-owned business enter-
20 prise as defined in subdivision fifteen of section three hundred ten of
21 the executive law.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD04724-01-9
A. 7008 2
1 (c) Computation. The credit authorized by this subdivision shall be
2 equal to one-third of all expenditures paid by the taxpayer to a minori-
3 ty or women-owned business enterprise pursuant to a contract for the
4 provision of goods and services during the tax year, provided that such
5 contract was not subject to the provisions of article fifteen-A of the
6 executive law or any other provision of law relating to the affirmative
7 action, and the taxpayer is not a minority or women-owned business
8 enterprise. Furthermore, the amount of such credit shall not exceed
9 five percent of all consideration paid to the taxpayer during the tax
10 year pursuant to contracts with government agencies for the provision of
11 goods or services.
12 § 2. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
13 of the tax law is amended by adding a new clause (xliv) to read as
14 follows:
15 (xliv) Minority andAmount of credit
16 women-owned businessunder subdivision
17 employment incentivetwenty-eight of
18 credit undersection two
19 subsection (jjj)hundred ten-B
20 § 3. Section 606 of the tax law is amended by adding a new subsection
21 (jjj) to read as follows:
22 (jjj) Minority and women-owned business employment incentive credit.
23 (1) General. A taxpayer shall be allowed a credit to be computed as
24 provided in this subsection, against the tax imposed by this article for
25 a certain portion of the consideration paid to a minority or women-owned
26 business enterprise pursuant to a contract for the provision of goods or
27 services. The credit provided for in this subsection shall be allowed
28 with respect to the tax year in which the consideration is paid to the
29 minority or women-owned business enterprise.
30 (2) Definitions. For the purposes of this subsection, the following
31 terms shall mean:
32 (i) "Government agency" means a state agency or a state authority as
33 defined in subdivision eleven of section three hundred ten of the execu-
34 tive law, or a political subdivision as defined in subdivision one of
35 section one hundred of the general municipal law.
36 (ii) "Minority or women-owned business enterprise" means a minority-
37 owned business enterprise as defined in subdivision seven of section
38 three hundred ten of the executive law or a women-owned business enter-
39 prise as defined in subdivision fifteen of section three hundred ten of
40 the executive law.
41 (3) Computation. The credit authorized by this subsection shall be
42 equal to one-third of all expenditures paid by the taxpayer to a minori-
43 ty or women-owned business enterprise pursuant to a contract for the
44 provision of goods and services during the tax year, provided that such
45 contract was not subject to the provisions of article fifteen-A of the
46 executive law or any other provision of law relating to affirmative
47 action, and the taxpayer is not a minority or women-owned business
48 enterprise. Furthermore, the amount of such credit shall not exceed
49 five percent of all consideration paid to the taxpayer during the tax
50 year pursuant to contracts with government agencies for the provision of
51 goods or services.
52 § 4. This act shall take effect on the first of January next succeed-
53 ing the date on which it shall have become a law and shall apply to tax
54 years commencing on or after such date.